I fixed the youtube link.
Where did you see "HDD failure"? This means Hard-Drive Device failure. Hard drives can die (they can also crash but it does not appear to be the situation here). Basically portions of the HD are no longer holding the information properly and programs and potentially data are being lost. Loosing some sectors is not unusual and isn't always fatal to the drive, the drive simply marks the sectors unusable and stores the data on a different sector. But if the number of bad sectors keeps growing then the hard drive needs replaced. Since it will not boot, it appears some system files have been corrupted (were stored on a sector that wasn't marked bad but is bad now so the file cannot be read properly).
Do you have WinXP install or recovery discs? If so, then insert it into the CD- or DVD-ROM drive. If the disc is not the first boot device then you will need to go into BIOS and set it so it is first in the boot order. Then boot with the CD and look for repair or recovery options.
If you are able to boot with the disc then it's best to copy as much of her information off as possible, as quickly as possible. (It could just be a few sectors or it could be the HD is dying, so best not to take any chances and get the important data). At that point you can run scandisk in thorough mode and have it flag bad sectors. Report back the results.